SEC Sues HyperFund Founders For $1.7 Billion Crypto Scam
SEC sues Sam Lee and Brenda Chunga for $1.7B HyperFund crypto scam, breaking laws, and cheating investors.
The U.S. Securities and Exchange Commission (SEC) is suing Sam Lee and Brenda Chunga (Bitcoin Beautee) for their role in HyperFund, a possible crypto scam that got over $1.7 billion. The duo are charged with selling fake "membership" plans, promising big returns, all of which are against federal laws.
Lee and Chunga are said to have misled investors with promises of big profits from HyperFund's crypto mining and their affiliation with a Fortune 500 company. The SEC made a statement about this saying “The only thing they were mining was their investors' pocket”
Chunga, or Bitcoin Beautee, has made a deal with the SEC where she promised not to break these laws again and agreed to pay fines. However, these fines are to be decided by the court later on. It is also noteworthy that this deal still requires the court's approval.
On the other hand, the SEC is taking Lee to court for breaking fraud and registration laws. They intend to stop his involvement in similar activities, get him to return the money he made wrongly, and pay extra fines.
Besides the SEC, the U.S. Attorney's Office in Maryland has also charged Lee and Chunga with wire and security fraud. Chunga admitted to planning this.
It was also revealed that Lee is linked to HyperVerse, another possible scam aimed at people in Asia, Africa, and the Pacific. The SEC speculates that Lee might be involved in other crypto scams.
